Multicultural Marketing

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Alignment of Cultural “DNA” with Brand Attributes in Marketing Campaigns

April 30, 2008

THE CENTER FOR BUSINESS INTELIIGENCE

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Intro Phase Growth Phase Mature Phase Decline Phase

2

Corporate America Recognizes the Potential.Ethnic Markets Are In the Growth Phase

Identify under-served markets segments

Align brand and targeted segment’s attributes (culturally relevant)

Leverage attributes to maximize brand consideration (reasons to believe in the brand)

Deliver a unique customer experience

Anchor the brand through cross sales and referrals

Growth PhaseStrategies

Mature PhaseStrategies

SALE

S &

PR

OFI

TS

Ethnic Markets• Hispanic• Asian American• African American

General Market

Source: Marketing Management – Philip Kotler

3

The US is Now A Country With Different Colors, Tastes and Rhythms

Multicultural Penetration

1970 2000

4

Multicultural Consumers’ Economic & Geographic Characteristics Are Evolving

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Cultural Consumer Groups Have Different World Views and a Unique “Cultural DNA”

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Cosmology: All behavior is inter-related in the harmony of the Polynesian universe.

Nyaya: The objective world is independent of thought and mind.

Conative: One knows through self transcendence.

Person – Group: The highest value is in group unity.

AsianAsian-AmericanNative American

Ntuology: All behavior is inter-related through human and spiritual networks.

Diunital: The union of opposites.

Affective: One knows through feeling and rhythm.

Person – Person:The highest value is relationship between people.

African-AmericanHispanicArabian

Technology: All behavior is repeatable and reproducible.

Dichotomous: Either/Or

Cognitive: One knows through counting and measuring.

Person-ObjectThe highest value is in objects or the acquisition of objects

EuropeanEuro-American

Way of LivingSystem of Thought

Knowledge Orientation

Value OrientationCultural Groups World Views

Philosophical Orientations of Different Cultural Groups

From Nichols E.J. Understanding the Philosophical Orientation of Different Cultural Groups.

Macro Differences Among Major Cultural Groups

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It’s not just about a different language, it’s also about a different culture

Relationship Oriented

Low Reliance on Institutions Inter-

dependence

Inclusiveness of Extended Family

FamilyOriented

Relationship Oriented

Low Reliance on Institutions Inter-

dependence

Inclusiveness of Extended Family

FamilyOriented

Hispanic Cultural DNA

Source; Isabel Valdes

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Cultural DNA - African-American Consumers

African-American

Source: “What’s Black About It” Miller-Kemp; Yankelovich.

The Black Experience

Slavery

Post Slavery Discrimination

Diversity (recognition of uniqueness)

GratificationIndependence

(overcoming adversity)

Relationships

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Communication / Non-Confrontation

Group

Community & Family

Philosophy /Church

CooperationCelebrations

Cultural DNA - Asian-American Consumers

Asian-American

Sources: Various data sources.

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. . . And, Multicultural Consumers Have Different Experiences & Attitudes Towards Financial Services . . .

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Multicultural Consumers’ Financial Holdings

Source: DataMonitor.

Proprietary Slide Omitted

12

Percent of Households Who Agreed In A 2001 Survey:“I buy the minimum amount of (auto) insurance that is required by law”

Anglo Hispanic African-American

Asian

More than $75K

$45 to $75K

$25K to $44K

Less than $25K

4046 47 44

2534

3843

1421

3438

1217

23

44

Household Income:

Ethnicity/Race:

Attitudes Toward Insurance

Source: Barraza Consulting Group Knowledge Database.

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Brands, Like Consumers Have Distinct Attributes & Personalities

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Burger King

15

Red Robin

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Treo

17

iPhone

18

Dasani

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Perrier

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. . . Financial Service and Insurance Companies Can Compel Multicultural Consumers To Buy Their Products & Services . . .

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Barraza Consulting Group’s Alignment Process

Alignment of Brand and Consumer Attributes Maximizes Business Results

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Case Study: Brand XYZ

Multi‐Line Insurance Company

Process to Align Brand XYZ With Target Hispanic‐Centric Consumers in Major Metro Market

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BCG’s Alignment Process for Brand XYZ

DISCOVERY DESIGN DEPLOYDISCOVERY DESIGN DEPLOY

• Assess Current State• Management Interviews• Distribution Channel

Interviews• Benchmark• SWOT• Situation Analysis• Plan for Design Phase• Measurement Plan• Strategic Intent

• Strategies• Sales Targets/Goals• Marketing Plan• Scorecards• MarCom Plan• Research Plan• Organizational Alignment• Internal Comm. Plan• Operating Budget• Performance Checkpoint• Baseline

• Communicate Goals• Build Out Process• Start Creative Development• Maintain Org. Alignment• Design Research / Measure• Transfer Knowledge• Manage Blind Spots• Initiate Research• Launch Initiative• Populate Scorecards

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Business Opportunity Analysis for Brand XYZ

Percentage Change By State (2006 to 2011)

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Califor

nia

Texa

s

New York

Florid

aIllino

is

Penn

sylva

nia

Ohio

Michiga

n

Georgi

a

North C

arolin

a

New Je

rsey

Virgin

ia

Massa

chus

etts

Was

hingto

n

Indian

a

Arizo

na

Tenn

esse

e

White Non Hispanic Black Non Hispanic Hispanic Population

Population Growth 2006 to 2011 – Selected States

Population Growth 2006 to 2011 – Florida

• Market Sizing• Demographic Trends• Geographic Analysis• Middle Market Estimation• Modeling

Source: Analysis by Barraza Consulting Group. .

Hispanic Household Income 2006 to 2011 - Florida

Proprietary Slide Omitted Proprietary Slide Omitted

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Population Growth 2006 to 2011 – Florida

Significant Hispanic growth in Florida will continue.Half the Florida population growth from 2006 to 2011 will be Hispanic.



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Hispanic Household Income 2006 to 2011 - Florida

There is a sizeable Hispanic middle market in Florida.Over the next five years middle market Hispanic households will increase rapidly.



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Business Opportunity Model Auto Insurance

Barraza Consulting Group’s BOMSM

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• Strengths– 100+ years in business.– Strong bond with its independent agencies.– Claims and customer service are its key differentiators.– Has distribution capability in place to sell to target segment.

• Weaknesses– Lack of brand equity and recognition among consumers.

• Opportunities– Minimal channel competition for ethnic markets.– Agencies and organization recognize the market opportunity.

• Threats– Competitors starting to focus on the value of excellent service.

Intelligence About Brand XYZ

Source: Interviews, data analysis, synthesis by Barraza Consulting Group.

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Consumer Insight Enabled Alignment With Brand XYZ Attributes


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Promotion • Brand messaging: “….. ”.• Leverage brand longevity, 100 years of Brand XYZ heritage.• Communications technology to drive consumer to distribution channel.

• Weak brand equity among consumers.

• Minimal IA channel competition.

Placement• Strong bond with agencies.• Agencies recognize market

opportunities.• Existing capability to sell to

target segment.

• Align target geographies with best in class agencies.•. Implement agency mentorship program.

Product• Claim & customer service are

major differentiators.• Competitors are starting to focus

on the value of excellent service.

• Provide In-culture education..• Build-out infrastructure, based on demand.• Continually assess customer experience to align with growth initiatives.

People• Infrastructure ready to support

Hispanic market. • Org. recognizing market

opportunities.

• Brand XYZ commitment to growth markets publicized.• Leverage diversity to gain competitive advantage.

Pricing• Distribution believe the

middle market is accessible.

• Track segment performance.• Adjust targeting as needed.

Brand XYZ Core Strategies

Note: selected strategies.

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EISENHOWEREISENHOWEREISENHOWEREISENHOWEREISENHOWEREISENHOWEREISENHOWEREISENHOWEREISENHOWER




CLEVELANDCLEVELANDCLEVELANDCLEVELANDCLEVELANDCLEVELANDCLEVELANDCLEVELANDCLEVELAND

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COLUMBUSCOLUMBUSCOLUMBUSCOLUMBUSCOLUMBUSCOLUMBUSCOLUMBUSCOLUMBUSCOLUMBUS

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MOHAWKMOHAWKMOHAWKMOHAWKMOHAWKMOHAWKMOHAWKMOHAWKMOHAWK US HWY 41US HWY 41US HWY 41US HWY 41US HWY 41US HWY 41US HWY 41US HWY 41US HWY 41


USUSUSUSUSUUUUS

HILLSBOROUGHHILLSBOROUGHHILLSBOROUGHHILLSBOROUGHHILLSBOROUGHHILLSBOROUGHHILLSBOROUGHHILLSBOROUGHHILLSBOROUGH

KENN

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STAT

E HW

Y 61

8

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Y 61

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Y 61

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Y 61

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Y 61

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Y 61

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Y 61

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Y 61

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Y 61

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I 4I 4I 4I 4I 4I 4I 4I 4I 4

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Y 61

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Y 61

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Y 61

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Y 61

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Y 61

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Y 61

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Y 61

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Y 61

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STAT

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Y 61

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STATE HWY 60

STATE HWY 60

STATE HWY 60

STATE HWY 60

STATE HWY 60

STATE HWY 60

STATE HWY 60

STATE HWY 60

STATE HWY 60

I 4I 4I 4I 4I 4I 4I 4I 4I 4

STATE H

WY

589STA

TE HW

Y 589

STATE H

WY

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TampaTampaTampaTampaTampaTampaTampaTampaTampa

West ParkWest ParkWest ParkWest ParkWest ParkWest ParkWest ParkWest ParkWest Park

Palm River-Clair MePalm River-Clair MePalm River-Clair MePalm River-Clair MePalm River-Clair MePalm River-Clair MPalm River-Clair MPalm River-Clair MPalm River-Clair Me

Egypt LakeEgypt LakeEgypt LakeEgypt LakeEgypt LakeEgypt LakeEgypt LakeEgypt LakeEgypt Lake

East Lake-Orient ParkEast Lake-Orient ParkEast Lake-Orient ParkEast Lake-Orient ParkEast Lake-Orient ParkEast Lake-Orient ParEast Lake-Orient ParEast Lake-Orient ParEast Lake-Orient Park

Del RioDel RioDel RioDel RioDel RioDel RioDel RioDel RioDel Rio

wn 'N' Countrywn 'N' Countrywn 'N' Countryown 'N' Countryown 'N' Countryown 'N' Countryown 'N' Countryown 'N' Countryown 'N' Country

Overlays

CITIESFL ADDRESSESFLZIPPLUS4STREETS_EMAJ HWY RAM1INTERSTATESMAJ HWY RAMPHIGHWAY(H)AIRPORT PLYHWY (H)STATESBYNAMEWATERHYDRO_MJR PL

Overlays

CITIESFL ADDRESSESFLZIPPLUS4STREETS_EMAJ HWY RAM1INTERSTATESMAJ HWY RAMPHIGHWAY(H)AIRPORT PLYHWY (H)STATESBYNAMEWATERHYDRO_MJR PL

Classes forCULTURE SCORE

in FLZIPPLUS4

0.0 - 20.320.3 - 27.127.1 - 67.7ExcludedNot Selected

Classes forCULTURE SCORE

in FLZIPPLUS4

0.0 - 20.320.3 - 27.127.1 - 67.7ExcludedNot Selected

LowMediumHigh

CulturalCentricity

Brand XYZ: Targeting Hispanic Cultural Centricity (zip+4)

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Brand XYZ Households

Brand XYZ:Measurement of Hispanic Centric Business

NOTES: BRAND XYZ RESULTS INDEXED TO MAINTAIN CONFIDENTIALITYi.w. = information withheld to maintain confidentiality

Brand XYZ Market: Miami DadeMarket Segment Baseline AnalysisMarket Segment: Hispanic CentricDeveloped by Barraza Consulting GroupBrand XYZ: as of 1Q07

Hispanic Centricity

ScoreBrand XYZ Households

Market Households

Brand XYZ Share % Auto Only Prop Only Auto & Prop

10 info. withheld (iw) info. withheld (iw) 4.7 info. withheld (iw) info. withheld (iw) info. withheld (iw)9 8,571 131,693 6.5 5,943 2,217 416 8 i.w. i.w. 7.6 i.w. i.w. i.w.7 i.w. i.w. 8.4 i.w. i.w. i.w.6 i.w. i.w. 0.1 i.w. i.w. i.w.5 15,217 103,907 14.6 6,332 7,062 1,823 4 i.w. i.w. 18.0 i.w. i.w. i.w.3 14,407 83,809 17.2 5,932 6,332 2,143 2 155 3,258 4.8 107 48 - 1 i.w. i.w. 0.0 i.w. i.w. i.w.

Total Market i.w. i.w. 11.0 i.w. i.w. i.w.

Total in Scores 4-10 76,486 740,890 10.3 38,930 29,358 8,187 Barraza Consulting Group, July 2007

Households Households

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The Power of Differences.

The Difference that Makes the Difference.

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Hahns Beer: Gender

Video Clip Shown

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Maxima: Anglo

Video Clip Shown

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Maxima: African-American

Video Clip Shown

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Allstate: Asian

Video Clip Shown

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Allstate: African-American

Video Clip Shown

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Allstate: Hispanic

Video Clip Shown

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“The secret to maximizing the growth potential offered by multicultural

markets is an organizational effort that is systematic and holistic.”

.

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What Is Organizational Effectiveness in Multicultural Marketing?

Organizations evolve from Dormant to Leadership in pursuit of High Growth Market Segments, like the Hispanic market.

Brand awareness and consideration by multicultural market segments is extremely low or non-existent.

Dormant

Local market leaders (e.g., Brand and Sales Managers) identify opportunities to accelerate growth by focusing on multicultural market segments.

Awakening

Business unit dedicates resources and organizes unique multicultural marketing effort.

Emerging

Business unit aligns multicultural marketing strategies with business objectives.

Advanced

Multicultural Marketing strategies “baked in” and fully incorporated into business goals leading to broad organizational accountability for results.

Leadership

Grow

th &

Suc

cess

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Dormant Awakening Emerging Advanced Leadership Inactive Reactive Pro-Active Strategic

Mar

ket

Segm

ents

Under representation of HGMS (High Growth Market Segments) within book of business relative to the market opportunity.

Periodic analysis of the book of business identifies opportunities and challenges among HGMS.

HGMS baseline, within book of business, and growth objectives established.

Measurement system continuously monitors HGMS performance with scheduled updates to corporate stakeholders.

HGMS measurement and accountabilities integrated into corporate and business unit metric systems.

Sale

s

Distribution channels concerned about missed market opportunities.

Unilateral actions by distribution channels to address HGMS needs.

Business Unit provides marketing support, as needed, to distribution channels.

Strategies developed to systematically provide marketing support.

Segmentation models identify and support HGMS in a changing market environment.

Cus

tom

er

Exp

erie

nce Poor customer experience with

underlying service issues unresolved.

Ad hoc service adjustments by front line employees address unique needs of HGMS

Service best practices identified and strategies developed to improve service to HGMS

Broad communication of service best practices with significant improvement of customer satisfaction.

HGMS customer service insights and practices evaluated for their applicability to the broader customer base.

Com

mun

ity

Out

reac

h

Brand awareness and consideration by HGMS is extremely low or none existent.

Sporadic participation at community events to develop awareness and consideration.

Business unit provides funding for community outreach and event participation

Community Outreach strategies developed to selectively and strategically engage social-civic organizations

Community Outreach strategically aligned with business objectives and brand leaders participate on selected organizations’ boards of directors

Supp

liers

Hidden asset and often underleveraged resource.

The brand recognizes that spend is an investment in communities' development.

The brand assesses and communicates to leaders (internal and external) the economic impact of supplier spend

Sponsorship and mentorship of diverse suppliers

Diverse suppliers strategically selected in communities targeted for growth.

Em

ploy

ee

(Net

wor

ks)

Employee complaints lead to EEOC investigations. High turnover of diverse employees.

Corrective actions developed to address complaints. Input from diverse employee groups is sought.

Work force diversity measured as percent of work force. Employee resource groups are formed and engaged in HGMS insight.

Diverse candidates sought and selected for leadership positions. Employee resource groups are recognized and mentored for leadership development.

Diverse candidates mentored and fast tracked into key positions. Employee resource groups are assigned senior leader sponsors who actively solicit input on employee and business issues.

What are the Dimensions of Organizational Effectiveness?

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The development process from Dormant to Leadership is rigorous, but the rewards are huge providing up to twice the market growth index.

Why Does Organizational Effectiveness Matter?

Dormant Awakening Emerging Advanced Leadership

0.50

2.00

HispanicGrowth Index

1.00

1.25

1.75

G r

o w

t h

I n

d e

x

Index

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“Reaching markets with the right voice”….

When the right voice is used, consumers hear, understand, and feel your brand…. you create an emotional reaction that connects and attracts consumers to your brand…. consumers see themselves within your brand characteristics making them feel understood and welcomed….

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Multicultural marketing forces you to understand your brand from consumers’ or customers’ point of view.

Maximum and sustained success is achieved by delivering the essence of your brand broadly/holistically where the targeted consumer sees and engages a seamless organization that values their uniqueness.

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BRAND XYZIn the very end frame you see a table setting with your brand name as the family/familiagathers for the family meal… You are welcomed as a member of the family.